1031 exchanges of real estate are governed by pretty strict rules about the type of property that can be exchanged, the amount of time a taxpayer has to complete their exchange, and more. But are these rules always hard and fast, or are there exceptions? In this article, we are going to discuss the ways in which you can extend your 1031 exchange period past the standard 180 day deadline.
Standard Time Periods in a 1031 Exchange
In any typical 1031 exchange, the time periods are pretty much set in stone. You have 180 days in total to complete your 1031 exchange (with the first 45 of those days being set aside for identification of your replacement property). Generally, if you miss this deadline, your exchange will fail. But there are a few exceptions to the rule.
Federally Declared Disasters
If your property is in a location that has been declared as a disaster area by the Federal Government (due to a hurricane, flooding, or other natural disaster), you can get an extension on your exchange deadline. This extension is typically 120 days. Be sure to discuss your situation with your CPA to make sure you are eligible for the extension.
Defer Your Tax, Maximize Your Gain!
Get your 1031 exchange off the ground today and start deferring your capital gains taxes on the sale of real estate. The like-kind exchange process can be complicated, but our intermediaries are here to simplify things as much as possible for you. Give our 1031 exchange professionals a call today to learn more about the process and how we work. Our primary office is located in Minneapolis, but we work with clients throughout the United States.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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